The exporter is required to obtain a special license from the US Department of Commerce, even if the goods will be used for civilian purposes
The United States again tightened export restrictions on supplies to Russia. On Monday, two new regulations by the Bureau of Industry and Security (BIS) of the US Department of Commerce came into force, curbing the potential export of sensitive technologies to Russia, China and Venezuela.
One of these rules cancels the exception for American exporters who previously had the opportunity to deliver to Russia a relatively wide range of goods without a license, if they meant civilian use by civilian consumers. This list contained bearings, semiconductors, computers, equipment for the production of aircraft engines, and more. However, under the new rules, the exporter must obtain a special license from the US Department of Commerce, even if the goods will be used for civilian purposes.
The US agency explained the decision to introduce new rules for such deliveries by the fact that countries such as Russia and China often resort to integrating civil and military industries, which complicates the identification of end users for United States companies.
The second restriction also applies to Russia, China and Venezuela, it will expand the definition of “military use” of goods and limit the already minimal ability of the Russian defense sector to acquire American goods, software and technology.
Now, the concept of the end military user will include not only the armed forces, the National Guard, the national police and intelligence services, but also any person or organization whose actions or functions involve supporting the military use of the goods. The last item will become an obstacle to the supply of American goods to Russian users who are in any way connected with the military or power industry.
On June 29, US Secretary of State Mike Pompeo announced that the United States was stopping the supply of defense products and dual-use equipment to Hong Kong.